A bipartisan grouping of three Senators has pressed the crypto exchange on allegations it sought to limit compliance.
A bipartisan grouping of three US Senators has written to Binance asking for details on its money laundering controls, accusing the crypto exchange of being a “hotbed of illegal financial activity,” according to the Wall Street Journal.
According to the Mar. 1 letter to Binance Chief Executive Officer Changpeng “CZ” Zhao, the group requested details of the company’s balance sheets, internal procedures and any communications about alleged efforts by Zhao to limit compliance.
The letter, from Senators Elizabeth Warren (D-Ma), Chris Van Hollen (D-Md) and Roger Marshall (R-Ks) said that Binance and related entities “have purposefully evaded regulators, moved assets to criminals and sanctions evaders and hidden basic financial information from its customers and the public,” WSJ reported.
The exchange is reportedly bracing itself for significant fines for past conduct.
A Binance spokesperson told CoinDesk that it “always” responds to queries from jurisdictions in which it operates, but suggested accusations in the letter were false.
“A lot of misinformation has been spread about our company and we look forward to correcting the record,” the spokesperson said, adding that Binance.com, the corporate entity, does not operate in or have customers in the U.S.
However, the company conducts its U.S. related business through its subsidiary Binance.US.
In response to the Senators, the company “will provide information to help them better understand why we remain the most trusted platform with users across the globe,” the spokesperson added.